Chinese EV makers’ shares skid as sales slide after tax incentive ends
Shares in Hong Kong-listed BYD, Xpeng, Li Auto and Nio plummet as tepid January sales underline pessimistic forecasts for the year
“Lacklustre [sales] data in January represented a rude reminder that the industry will face a difficult year,” said Ivan Li, a researcher at Loyal Wealth Management in Shanghai. “Nearly all EV makers have become victims to a resumption of purchase tax, and manufacturers of low-priced cars will also suffer a big setback from an adjusted cash subsidy policy.”
BYD, the world’s largest EV builder, handed 210,051 vehicles to customers at home and abroad in January, down 50 per cent from a month earlier and the lowest since February 2024, when it sold 122,311 cars. Its Hong Kong-listed shares plunged 6.9 per cent to HK$91 on Monday
Xpeng posted a 46.7 per cent month-on-month decline in sales in January, delivering a total of 20,011 units. Its Hong Kong shares dived 6.8 per cent to HK$66.80.
Li Auto added an eighth month to a losing streak, as January sales slid 37.5 per cent from December to 27,668 vehicles. Its shares lost 2.3 per cent to HK$64.45.